Ex-Politician Barney Frank Suspects ‘Anti-Crypto’ Nonsense Behind Signature Bank Failure
Ah, it looks as if former Massachusetts congressman Barney Frank has caught wind of the recent failure of Signature Bank. And he’s quite suspicious of why it went down.
Doubting the Reasons Given
Signature Bank is said to have failed because its “concentration of resources in market cells” put it at risk of making “disproportionate losses”. But Frank suspects something altogether different. The man who helped pass the Dodd-Frank Wall Street Reform Act (which made its fair share of enemies in the crypto community) thinks there’s quite possibly a “hidden agenda” behind the bank’s failure.
Signature Bank’s Cases
Frank isn’t buying that the bank was facing some run-of-the-mill financial difficulties. What really tipped him off is that the bank was facing two notable legal cases involving cryptocurrency.
The first happened in 2018, when the bank revealed that it had “disputed the legitimacy of cryptocurrency transactions”. The second happened in 2020, when Signature Bank was at the center of a a $160 million lawsuit involving a crypto fraud case.
In a statement released to the press, Frank declared that:
“It is no coincidence that Signature Bank used to handle crypto transactions until it was sued. It could be that the bank was targeted by anti-crypto forces and drained of resources. I think we need to look into this further.”
The Crypto Community’s Reaction
The crypto community, which clearly has some history with the former congressman, isn’t too surprised by his skepticism. Indeed, they have been quite vocal about their suspicions and are even pushing for an investigation.
If Barney Frank is right and there was something shady going on behind the scenes, the consequences could be drastic. Here are just a few possibilities:
- A criminal investigation and potential charges against those responsible
- A lawsuit from Signature Bank against those responsible, potentially leading to major financial repercussions
- Cryptocurrency regulations being put into place to prevent future fraud cases
- Signature Bank or other banks being encouraged to resume cryptocurrency transactions
Only time will tell if Frank’s suspicions were correct. But hey, we can dream, right?
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